LIMA — At First Federal Bank, paycheck protection program applications — filed by small businesses looking to retain their employees in the wake of the novel coronavirus — began to trickle in at the end of last week. Then came the deluge.
“We anticipated a lot of interest, but it has been an overwhelming response,” Amy Hackenberg, market president, said. She’s been coordinating the Small Business Administration’s lending efforts at First Federal Bank.
More than half of the bank’s existing commercial client base have filed applications through the institution. Hackenberg estimated that the average amount requested from the federal government per business is roughly $350,000.
In response, the bank has quadrupled its staff coordinating the program. Project point people have also been identified throughout the company, and Saturday’s day off has officially been canceled.
Business owner Kevin Wieging applauded such efforts. The owner of Delphos-based Ultrasound Special Events, Wieging is one of the few who have filed early, and the business’s loan has since been approved.
“That’s one thing I would highly encourage,” Wieging said. “You definitely want to work through a local institution.”
He expects to bring back his 10 full-time employees by May 8 at the latest. But even then, he’s not sure that he’ll have anything for his employees to do.
“The fact of the matter, it’ll be a pretty easy job,” he said.
Wieging said Ultrasound has been hit hard by the state’s stay-at-home orders. The day Gov. Mike DeWine announced the move, his customers began to cancel their special gatherings, and Wieging said the business took a $200,000 hit. It continues to bleed dollars with zero revenue, and he’s uncertain if the celebrations needed for his business will kick off at the same rate with everyone spooked by potential disease.
“Many of these various small businesses, they certainly don’t have the capital. So they really need the money,” Lima/Allen County Chamber of Commerce President Jed Metzger said.
While Friday’s launch of the program hit some stumbling blocks, Metzger said he’s since heard from federal officials — including Vice President Mike Pence — that many of the complications have smoothed out.
“More than the government expected have applied. It’s sort of bottlenecked, but our bankers are working extremely hard,” Metzger said.
For those still waiting, Metzger encouraged business owners to reach out to their traditional commercial lenders. Such institutions should already have some of the pertinent information necessary to file paycheck protection applications with the SBA.
Meanwhile, Hackenberg waits for the next round of applications. Starting Friday, April 10, sole proprietorships and independent contractors can begin filing for paycheck protection dollars.
“We want to help our clients get on their feet,” Hackenberg said. “All of us are rising to the occasion and doing the best we can with our clients.”
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